Questions
BACC011 Quiz 4- Requires Respondus LockDown Browser
Short answer
AquaCool produces and sells premium bottled water sourced from natural springs. Here is some information about the selling price and costs. Selling price $6 per bottle Bottle cost $1.49 per bottle Water cost $0.37 per bottle Labelling cost $0.10 per bottle Fixed factory overhead $10,000 Fixed salaries expenses $20,000 Fixed marketing expenses $30,000 Calculate the contribution margin per unit. Round your answer to two decimal places using normal math rounding.
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Step-by-Step Analysis
To determine the contribution margin per unit, focus on the variable costs that change with each bottle sold, not the fixed costs.
First, identify the selling price per bottle: $6.00.
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